Apple Expects 'Significantly Higher Memory Costs' to Impact iPhone, MacBook Neo
Apple CEO Tim Cook warned of significantly higher memory costs impacting future product availability and pricing, particularly for AI-focused devices like the MacBook Neo and Mac Studio, as global supply constraints persist. Despite strong Q2 revenue of $111 billion driven by demand for the iPhone 17 and Apple Intelligence features, the company faces challenges balancing cost increases with market competitiveness. Cook emphasized ongoing evaluation of strategies amid supply chain pressures, while confirming a leadership transition to John Ternus in September.
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Apple is expecting "significantly higher memory costs" heading into the remainder of 2026, CEO Tim Cook said Thursday during Apple's second-quarter earnings call, as the tech giant faces down the memory shortage impacting the rest of the industry. Cook -- who is stepping down as CEO on Sept. 1 and will be replaced by John Ternus, the company's senior vice president of hardware engineering -- said Apple was partially unaffected by the memory shortage during this quarter, as it already had a lot of devices in stock. But beyond June, costs will rise."We believe memory cost will drive an increasing impact on our business, and we'll continue to evaluate this," Cook said.
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